Legal

On Tuesday, the Department of Labor finalized its Retirement Security Rule that updates the definition of an investment advice fiduciary, while critics say millions could now lose access to professional financial guidance.

The White House Office of Management and Budget has concluded its review of the Department of Labor's new Retirement Security Rule, indicating that the controversial new rule will become final sometime this Spring.

The DOL's latest iteration, proposed in 2023 and soon to become final, will ensure that advisors prioritize their clients' best interests when recommending investments, prompting employers to make necessary adjustments.

While the DOL continues to try to refine its fiduciary rule, with the latest iteration sent to the Office of Management and Budget for review last month, there are several best practices that protect plan sponsors as well as participants.

The DOL has introduced complex admin costs – to support SECURE 2.0's new automatic transfer rule for small-balance 401(k)s of workers who change jobs – and they should be eliminated, says the ERISA Industry Committee.

The DOL offers guidance to assist fiduciaries in navigating a world where cyberattacks have become more and more commonplace, but plan sponsors also need to take the necessary steps to defray unwanted liability.